Forex Deal: CBN bars 4 Fintech banks from signing up new customers
The Central Bank of Nigeria (CBN) has issued a directive to four fintech companies, directing them to stop signing up new customers pending further notice.
The affected fintechs are Opay, Palmpay, Kuda bank, and Moniepoint.
According to Daily Trust, representatives from the companies confirmed that the CBN’s order is related to allegations of their accounts being used for illicit foreign exchange transactions..
However, they noted that the directive might be misdirected, as the majority of the implicated accounts belonged to commercial banks, not fintech platforms.
“I can confirm that 90% of the accounts implicated in the illicit forex transactions are with commercial banks, and only 10% are with fintechs. Why then has the CBN not extended this directive to the commercial banks? We face a widespread issue here, and targeting fintechs seems like an unfair focus on the more vulnerable targets,” one of the sources explained.
The Economic and Financial Crimes Commission (EFCC) recently secured a court order to freeze at least 1,146 bank accounts owned by various individuals and companies allegedly involved in illegal foreign exchange transactions.
Justice Emeka Nwite, in a decision on the ex-parte motion presented by the anti-graft agency’s lawyer, Ekele Iheanacho, also approved the commission’s request to complete the investigation within 90 days.
